Don Garlits is a landscaper. He is considering the

Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower, either the Atlas or the Zippy. Find the ∆IRR between the Atlas and Zippy, and recommend which mower he should buy for which range of MARRs (you need to state those ranges and what motors apply to them). Atlas Zippy Initial Cost $6,700 $16,900 Annual Operation and Maintenance Cost $1,500 $1,200 Annual Benefit $4,000 $4,500 Salvage Value $1,000 $3,500 Useful life, years 3 6 What is the ∆IRR between the Atlas and Zippy? Answer: <6 pts> Reasoning/Work: What is the range of MARRs for which Zippy should be purchased? Answer: <2 pts> Reasoning: What is the range of MARRs for which Atlas should be purchased? Answer: <2 pts> Reasoning:

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